Market Update - May 29, 2014

CBOT futures are trading similar to Wednesday with corn and wheat lower and soybean showing some strength, especially in the old-crop contracts. Soybean futures rallied until the middle of the night and then began to weaken. When e-trade reopened at 830 am CT, CBOT futures were hit with selling. Corn and wheat futures are now at/near the day’s lowest prices. Weather is favorable and the large funds are very long the corn and soybean market and needing to get out of their JULY contracts pretty soon (they might roll these positions).

Compared to last week steer calves under 600 lbs sold 2.00 to 4.00 lower; over 600 lbs sold steady with good demand on an average to good quality offering with fewer weaned calves on the market this week compared with last week. Heifer calves sold steady except featherweights under 400 lbs 10.00 lower in a light test and 600-700 lbs heifers sold 5.00 lower in a light test. Quality was average through good. Yearling steers sold 1.00 to 3.00 higher with very good demand, yearling heifers lightly tested.

Exceptionally good demand for weaned Holstein packages this week with a fancy offering of reputation calves from one farm. Slaughter cows sold steady to 2.00 higher and slaughter bulls sold steady to 1.0 higher with good demand.